Malcolm and gang, the "buy at limit vs. market" debate has inspired me to relate an experience that I've learned a lesson from and hopefully others can too. The story might also be inspirational to beginning gorilla-gamers, although not quite to LB's excitement level.
In early 1994, after doing much research, I decided that MSFT would be a good investment for my cash account. It looked like a company I could hold long term, enjoy the gains of the company's growth and not need to pay any taxes. Determined to get the best price, in a market that did not experience today's volatility, I put in my limit order for 100 shares of MSFT. Over two weeks I twice watched the price come within $1.50 of my limit price.
Geeeez, I thought, so close. Finally, on 4-18-94, I decided to buy 50 shares at market price ($82.50) and get the other 50 shares when the price came down to something more reasonable. Ha! That other 50 shares which I could have gotten for $75 more than I was willing to pay, and never got of course, is now equal to the 800 shares that my 50 blossomed into. Occasionally I wonder who has my other 50 shares <g>.
My lesson is to pull the trigger immediately when I find a stock I'm sure I want to own long term. And yes, I watched QCOM quickly offer a better price for two days after my market order but I had no regrets knowing I was locked in to a long term winner.
Thanks all for your contributions to this forum. Rory |
